NRS 332.115 Contracts
not adapted to award by competitive bidding; purchase of equipment by local law
enforcement agency, response agency or other local governmental agency;
purchase of goods commonly used by hospital.

NRS 332.117 Award
of contract to nonprofit organization or agency for training and employment of
persons with mental or physical disabilities.

NRS 332.185 Sale
of personal property of public entity; public auctions; donation of surplus
personal property by school district; chapter inapplicable to transactions
regarding real property. [Effective through June 30, 2016.]

NRS 332.185 Sale
of personal property of public entity; public auctions; donation of surplus
personal property by school district; chapter inapplicable to transactions
regarding real property. [Effective July 1, 2016.]

NRS 332.195 Joinder
or mutual use of contracts by governmental entities.

NRS 332.201 Duty
of governing body of certain counties to report to Office of Economic Development
concerning local emerging small businesses.

NRS 332.353 Additional
circumstance in which person may be deemed qualified service company.

NRS 332.357 Duty
of Office of Energy to provide information and educational resources; authority
of Office of Energy to provide support to local government; fees;
administration of account for fees; application for and receipt of other money
for account; regulations.

NRS 332.360 Authority
of local government to enter into performance contract; purpose of performance
contract; operational audits; third-party consultants.

NRS 332.362 Duty
of board of trustees of school district to adopt policy concerning performance
contracts; requirements for policy; annual report.

1. For the purpose of this chapter, unless
the context otherwise requires, “local government” means:

(a) Every political subdivision or other entity
which has the right to levy or receive money from ad valorem taxes or other
taxes or from any mandatory assessments, including counties, cities, towns,
school districts and other districts organized pursuant to chapters 244, 309,
318, 379, 450, 474, 539, 541, 543 and 555 of
NRS.

(b) The Las Vegas Valley Water District created
pursuant to the provisions of chapter 167, Statutes of Nevada 1947, as amended.

(c) County fair and recreation boards and
convention authorities created pursuant to the provisions of NRS 244A.597 to 244A.655, inclusive.

(d) District boards of health created pursuant to
the provisions of NRS 439.362 or 439.370.

NRS 332.025Other terms defined.As
used in this chapter, unless the context otherwise requires:

1. “Authorized representative” means a
person designated by the governing body to be responsible for the development,
award and proper administration of all purchases and contracts for a local
government or a department, division, agency, board or unit of a local
government made pursuant to this chapter.

2. “Chief administrative officer” means
the person directly responsible to the governing body for the administration of
that particular entity.

3. “Evaluator” means an authorized
representative, officer, employee, representative, agent, consultant or member
of a governing body who has participated in:

(a) The evaluation of bids;

(b) Negotiations concerning purchasing by a local
government; or

(c) The review or approval of the award,
modification or extension of a contract.

4. “Governing body” means the board,
council, commission or other body in which the general legislative and fiscal
powers of the local government are vested.

5. “Proprietary information” means:

(a) Any trade secret or confidential business
information that is contained in a bid submitted to a governing body or its
authorized representative on a particular contract; or

(b) Any other trade secret or confidential
business information submitted to a governing body or its authorized
representative by a bidder and designated as proprietary by the governing body
or its authorized representative.

Ê As used in
this subsection, “confidential business information” means any information
relating to the amount or source of any income, profits, losses or expenditures
of a person, including data relating to cost, price, or the customers of a
bidder which is submitted in support of a bid. The term does not include the
amount of a bid submitted to a governing body or its authorized representative.

(a) A governing body or its authorized
representative shall advertise all contracts for which the estimated annual
amount required to perform the contract exceeds $50,000.

(b) A governing body or its authorized
representative may enter into a contract of any nature without advertising if
the estimated annual amount required to perform the contract is $50,000 or
less.

(c) If the estimated annual amount required to
perform the contract is more than $25,000 but not more than $50,000, requests
for bids must be submitted or caused to be submitted by the governing body or
its authorized representative to two or more persons capable of performing the
contract, if available. The governing body or its authorized representative
shall maintain a record of all requests for bids and all bids received for the
contract for at least 7 years after the date of execution of the contract.

2. This section does not prohibit a
governing body or its authorized representative from advertising for or
requesting bids regardless of the estimated annual amount required to perform
the contract.

NRS 332.045Advertisement to be by notice to bid; publication; contents of
notice.

1. The advertisement required by paragraph
(a) of subsection 1 of NRS 332.039 must be by
notice to bid and must be published:

(a) In a newspaper qualified pursuant to chapter 238 of NRS that has a general
circulation within the county wherein the local government, or a major portion
thereof, is situated at least once and not less than 7 days before the opening
of bids; and

(b) On the Internet website of the local
government, if the local government maintains an Internet website, every day
for not less than 7 days before the opening of bids.

2. The notice must state:

(a) The nature, character or object of the
contract.

(b) If plans and specifications are to constitute
part of the contract, where the plans and specifications may be seen.

(c) The time and place where bids will be
received and opened.

(d) Such other matters as may properly pertain to
giving notice to bid.

1. A governing body or its authorized
representative may use on-line bidding to receive bids submitted in response to
a request for bids. The governing body or its authorized representative shall
not use on-line bidding as the exclusive means of receiving bids for the
request for bids.

2. A request for bids for which bids may
be submitted pursuant to subsection 1 must designate a date and time at which
bids may be submitted and may designate a date and time after which bids will
no longer be received.

3. A governing body or its authorized
representative may require bidders to:

(a) Register before the date and time at which
bids may be submitted; and

(b) Agree to terms, conditions or requirements of
the request for bids to facilitate on-line bidding.

4. The procedures established by a
governing body or its authorized representative for the purposes of conducting
on-line bidding must not conflict with the provisions of this chapter.

5. As used in this section, “on-line
bidding” means a process by which bidders submit bids for a contract on a
secure website on the Internet or its successor, if any, which is established
and maintained for that purpose.

NRS 332.061Limitation on disclosure of proprietary information and of bid
containing provision requiring negotiation or evaluation.

1. Except as otherwise provided in this
subsection and NRS 239.0115,
proprietary information does not constitute public information and is
confidential. A person shall not disclose proprietary information unless:

(a) The disclosure is made for the purpose of a
civil, administrative or criminal investigation or proceeding; and

(b) The person receiving the information
represents in writing that protections exist under applicable law to preserve
the integrity, confidentiality and security of the information.

2. A bid which contains a provision that
requires negotiation or evaluation by the governing body or an evaluator may
not be disclosed until the bid is recommended for the award of a contract.

NRS 332.065Award of contract for which bids have been advertised or
requested: Lowest responsive and responsible bidder; preference given to
recycled products; reawarding contract.

1. If a governing body or its authorized
representative has advertised for or requested bids in letting a contract, the
governing body or its authorized representative must, except as otherwise
provided in subsection 2, award the contract to the lowest responsive and
responsible bidder. The lowest responsive and responsible bidder may be judged
on the basis of:

(a) Price;

(b) Conformance to specifications;

(c) Qualifications;

(d) Past performance;

(e) Performance or delivery date;

(f) Quality and utility of services, supplies,
materials or equipment offered and the adaptability of those services,
supplies, materials or equipment to the required purpose of the contract;

(g) The best interests of the public; and

(h) Such other criteria as may be set forth by
the governing body or its authorized representative in the advertisement or
request for bids, as applicable, that pertains to the contract.

2. The governing body or its authorized
representative:

(a) Shall give preference to recycled products
if:

(1) The product meets the applicable
standards;

(2) The product can be substituted for a
comparable nonrecycled product; and

(3) The product costs no more than a
comparable nonrecycled product.

(b) May give preference to recycled products if:

(1) The product meets the applicable
standards;

(2) The product can be substituted for a
comparable nonrecycled product; and

(3) The product costs no more than 5
percent more than a comparable nonrecycled product.

(1) Available at a price which is not more
than 10 percent higher than that of paper products made from virgin material;

(2) Of adequate quality; and

(3) Available to the purchaser within a
reasonable period.

3. If after the lowest responsive and
responsible bidder has been awarded the contract, during the term of the
contract he or she does not supply goods or services in accordance with the bid
specifications, or if he or she repudiates the contract, the governing body or
its authorized representative may reaward the contract to the next lowest
responsive and responsible bidder without requiring that new bids be submitted.
Reawarding the contract to the next lowest responsive and responsible bidder is
not a waiver of any liability of the initial bidder awarded the contract.

4. As used in this section:

(a) “Postconsumer waste” means a finished
material which would normally be disposed of as a solid waste having completed
its life cycle as a consumer item.

(b) “Recycled paper product” means all paper and
wood-pulp products containing in some combination at least 50 percent of its
total weight:

(1) Postconsumer waste; and

(2) Secondary waste,

Ê but does not
include fibrous waste generated during the manufacturing process such as fibers
recovered from wastewater or trimmings of paper machine rolls, wood slabs,
chips, sawdust or other wood residue from a manufacturing process.

(c) “Secondary waste” means fragments of products
or finished products of a manufacturing process which has converted a virgin
resource into a commodity of real economic value.

NRS 332.068Notice of protest of award of contract: Period for filing;
contents; posting and disposition of bond or security; stay of action; immunity
of governing body from liability to bidder.

1. A person who submits a bid on a
contract that is required to be advertised pursuant to paragraph (a) of
subsection 1 of NRS 332.039 may, after the bids are
opened and within the period specified by the governing body or its authorized
representative, file with the governing body or its authorized representative a
notice of protest regarding the awarding of the contract.

2. A notice of protest must include a
written statement setting forth with specificity the reasons the person filing
the notice believes the applicable provisions of law were violated.

3. A person filing a notice of protest may
be required by the governing body or its authorized representative, at the time
the notice of protest is filed, to post a bond with a good and solvent surety
authorized to do business in this State or submit other security, in a form
approved by the governing body or its authorized representative, to the
governing body or its authorized representative who shall hold the bond or
other security until a determination is made on the protest. A bond posted or
other security submitted with a notice of protest must be in an amount equal to
the lesser of:

(a) Twenty-five percent of the total value of the
bid submitted by the person filing the notice of protest; or

(b) Two hundred fifty thousand dollars.

4. A notice of protest filed in accordance
with the provisions of this section operates as a stay of action in relation to
the awarding of any contract until a determination is made by the governing
body or its authorized representative on the protest.

5. A person who submits an unsuccessful
bid may not seek any type of judicial intervention until the governing body or
its authorized representative has made a determination on the protest and
awarded the contract.

6. A governing body or its authorized
representative is not liable for any costs, expenses, attorney’s fees, loss of
income or other damages sustained by a person who submits a bid, whether or not
the person files a notice of protest pursuant to this section.

7. If the protest is upheld, the bond
posted or other security submitted with the notice of protest must be returned
to the person who posted the bond or submitted the security. If the protest is
rejected, a claim may be made against the bond or other security by the
governing body or its authorized representative in an amount equal to the
expenses incurred by the governing body or its authorized representative
because of the unsuccessful protest. Any money remaining after the claim has
been satisfied must be returned to the person who posted the bond or submitted
the security.

NRS 332.075Rejection of bids.Any
or all bids received in response to a request for bids may be rejected by the
governing body or its authorized representative if such governing body or its
authorized representative determines that any such bidder is not responsive or
responsible or that the quality of the services, supplies, materials, equipment
or labor offered does not conform to requirements or if the public interest
would be served by such a rejection.

1. No contract awarded may be assigned to
any other person without the consent of the governing body or its authorized
representative.

2. No contract awarded or any portion
thereof may be assigned to any person who was declared by the governing body or
its authorized representative not to be a responsible person to perform the
particular contract.

1. A bid bond, performance bond, payment
bond or any combination thereof, with sufficient surety, in such amount as may
be determined necessary by the governing body or its authorized representative,
may be required of each bidder or contractor on a particular contract.

2. Any such bonds may be to insure proper
performance of the contract and save, indemnify and keep harmless the local
government against all loss, damages, claims, liabilities, judgments, costs and
expenses which may accrue against the local government in consequence of the
awarding of the contract.

3. If a local government requires such a
bond, it shall not also require a detailed financial statement from each bidder
on the contract.

(a) Results from the occurrence of a disaster,
including, but not limited to, fire, flood, hurricane, riot, power outage or
disease; or

(b) May lead to impairment of the health, safety
or welfare of the public if not immediately attended to.

2. If the authorized representative, chief
administrative officer or governing body of the local government determines
that an emergency exists affecting the public health, safety or welfare, a
contract or contracts necessary to contend with the emergency may be let
without complying with the requirements of this chapter. If such emergency
action was taken by the authorized representative or chief administrative officer,
he or she shall report it to the governing body at its next regularly scheduled
meeting.

NRS 332.115Contracts not adapted to award by competitive bidding; purchase
of equipment by local law enforcement agency, response agency or other local
governmental agency; purchase of goods commonly used by hospital.

1. Contracts which by their nature are not
adapted to award by competitive bidding, including contracts for:

(a) Items which may only be contracted from a
sole source;

(b) Professional services;

(c) Additions to and repairs and maintenance of
equipment which may be more efficiently added to, repaired or maintained by a
certain person;

(d) Equipment which, by reason of the training of
the personnel or of an inventory of replacement parts maintained by the local
government is compatible with existing equipment;

(e) Perishable goods;

(f) Insurance;

(g) Hardware and associated peripheral equipment
and devices for computers;

(h) Software for computers;

(i) Books, library materials and subscriptions;

(j) Motor vehicle fuel purchased by a local law
enforcement agency for use in an undercover investigation;

(k) Motor vehicle fuel for use in a vehicle
operated by a local law enforcement agency or local fire department if such
fuel is not available within the vehicle’s assigned service area from a fueling
station owned by the State of Nevada or a local government;

(l) Purchases made with money in a store fund for
prisoners in a jail or local detention facility for the provision and
maintenance of a canteen for the prisoners;

(m) Supplies, materials or equipment that are
available pursuant to an agreement with a vendor that has entered into an
agreement with the General Services Administration or another governmental
agency located within or outside this State;

(n) Items for resale through a retail outlet
operated in this State by a local government or the State of Nevada;

(o) Commercial advertising within a recreational
facility operated by a county fair and recreation board;

(p) Goods or services purchased from
organizations or agencies whose primary purpose is the training and employment
of persons with disabilities; and

(q) The design of, and equipment and services
associated with, systems of communication,

Ê are not
subject to the requirements of this chapter for competitive bidding, as
determined by the governing body or its authorized representative.

2. The purchase of equipment for use by a
local law enforcement agency in the course of an undercover investigation is
not subject to the requirements of this chapter for competitive bidding, as
determined by the governing body or its authorized representative, if:

(a) The equipment is an electronic or mechanical
device which by design is intended to monitor and document in a clandestine
manner suspected criminal activity; or

(b) Purchasing the equipment pursuant to such
requirements would limit or compromise the use of such equipment by an agency
authorized to conduct such investigations.

3. The purchase of personal safety
equipment for use by a response agency or any other local governmental agency
is not subject to the requirements of this chapter for competitive bidding, as
determined by the governing body or its authorized representative, if:

(a) The personal safety equipment will be used by
personnel of the response agency or other local governmental agency in
preventing, responding to or providing services of recovery or relief in
connection with emergencies, acts of terrorism or other natural or man-made
disasters in which the health, safety or welfare of those personnel may be
compromised, impaired or otherwise threatened; and

(b) The cost of the personal safety equipment is
comparable to the cost of similar personal safety equipment that is available
for purchase by the public.

4. The governing body of a hospital
required to comply with the provisions of this chapter, or its authorized
representative, may purchase goods commonly used by the hospital, under a
contract awarded pursuant to NRS 332.065, without
additional competitive bidding even if at the time the contract was awarded:

(a) The vendor supplying such goods to the person
awarded the contract was not identified as a supplier to be used by the person
awarded the contract; or

(b) The vendor was identified as a supplier but
was not identified as the supplier of such goods.

Ê The
governing body of the hospital shall make available for public inspection each
such contract and records related to those purchases.

5. This section does not prohibit a
governing body or its authorized representative from advertising for or
requesting bids.

6. As used in this section:

(a) “Act of terrorism” has the meaning ascribed
to it in NRS 239C.030.

(b) “Personal safety equipment” means safety
equipment that personnel of a response agency or other local governmental
agency:

(1) Use in the course of preventing,
responding to or providing services of recovery or relief in connection with
emergencies, acts of terrorism or other natural or man-made disasters; or

(2) Wear or otherwise carry on a regular
basis.

Ê The term
includes, without limitation, firearms, boots, bulletproof vests or other types
of body armor, protective garments, protective eyewear, gloves, helmets, and
any specialized apparatus, equipment or materials approved or recommended by
the United States Department of Homeland Security.

(c) “Response agency” means an agency of a local
government that provides services related to law enforcement, firefighting,
emergency medical care or public safety.

NRS 332.117Award of contract to nonprofit organization or agency for
training and employment of persons with mental or physical disabilities.

1. In accordance with the Program to
Encourage and Facilitate Purchases by Agencies of Commodities and Services From
Organizations established pursuant to NRS
334.025, a governing body of a local government or its authorized
representative may award, without complying with the requirements for competitive
bidding set forth in this chapter, a contract for services or for the purchase
of supplies, materials, equipment or labor to a nonprofit organization or
agency whose primary purpose is the training and employment of persons with a
mental or physical disability, including, without limitation, a provider of
jobs and day training services certified pursuant to NRS 435.130 to 435.310, inclusive.

2. A nonprofit organization or agency
that:

(a) Wishes to submit a bid for such a contract
must:

(1) Register with the Rehabilitation
Division of the Department of Employment, Training and Rehabilitation as
required pursuant to NRS 334.025; and

(2) Establish a fair-market price for
those services, supplies, materials, equipment or labor by conducting a market
survey and must include the survey with the bid submitted to the local
government.

(b) Is awarded such a contract must report
quarterly to the Rehabilitation Division as required pursuant to NRS 334.025.

3. As used in this section, “nonprofit
organization or agency” means an organization or agency that is recognized as
exempt pursuant to the provisions of 26 U.S.C. § 501(c)(3).

1. Nothing in this chapter prohibits a
governing body or its authorized representative from contracting for interstate
or intrastate carriage of persons or property with a certificated common or
contract carrier at the rates set forth in the officially approved tariff of
such carrier.

2. Nothing in this section prohibits a
governing body or its authorized representative from soliciting informal rate
quotations.

3. Nothing in this chapter prohibits a
governing body or its authorized representative from obtaining supplies,
materials, equipment or services on a voluntary basis from the Purchasing
Division of the Department of Administration pursuant to NRS 333.470.

NRS 332.146Auction, closeout and bankruptcy sales; sale of merchandise left
after exhibition.

1. Except as otherwise provided by law, if
the governing body or its authorized representative determines that the
supplies, materials or equipment can be purchased at any public auction,
closeout sale, bankruptcy sale, sale of merchandise left after an exhibition,
or other similar sale at a reasonable savings over the cost of like merchandise
and below the market cost in the community, a contract or contracts may be let
or the purchase made without complying with the requirements of this chapter
for competitive bidding.

2. The documentation for the purchase or
acquisition must be summarized for the next regularly scheduled meeting of the
governing body, together with written justification showing the savings
involved.

1. Except as otherwise provided in
subsection 2, when a governing body or its authorized representative has
advertised for or requested bids in letting a contract and no responsible bids
are received, the governing body or its authorized representative may let the
contract without competitive bidding not less than 7 days after it publishes a
notice stating that no bids were received on the contract and that the contract
may be let without further bidding.

2. A governing body or its authorized
representative shall entertain any bid which is submitted after it publishes
such notice and before the expiration of the waiting period.

NRS 332.175Trade-in allowances for personal property.A governing body or its authorized
representative may solicit and accept trade-in allowances for personal property
of the public entity which has been determined by the governing body or its
authorized representative to be no longer required for public use in any manner
authorized by law.

NRS 332.185Sale of personal property of public entity; public auctions;
donation of surplus personal property by school district; chapter inapplicable
to transactions regarding real property. [Effective through June 30, 2016.]

1. Except as otherwise provided in
subsection 2 and NRS 244.1505 and 334.070, all sales of personal property of
the local government must be made, as nearly as possible, under the same
conditions and limitations as required by this chapter in the purchase of
personal property. The governing body or its authorized representative may
dispose of personal property of the local government by any manner, including,
without limitation, at public auction, if the governing body or its authorized
representative determines that the property is no longer required for public
use and deems such action desirable and in the best interests of the local
government.

2. The board of trustees of a school
district may donate surplus personal property of the school district to any
other school district in this State or to a charter school that is located
within the school district without regard to:

(a) The provisions of this chapter; or

(b) Any statute, regulation, ordinance or
resolution that requires:

(1) The posting of notice or public
advertising.

(2) The inviting or receiving of
competitive bids.

(3) The selling or leasing of personal
property by contract or at a public auction.

3. The provisions of this chapter do not
apply to the purchase, sale, lease or transfer of real property by the
governing body.

NRS 332.185Sale of personal property
of public entity; public auctions; donation of surplus personal property by
school district; chapter inapplicable to transactions regarding real property.
[Effective July 1, 2016.]

1. Except as otherwise provided in
subsection 2 and NRS 244.1505 and 334.070, all sales of personal property of
the local government must be made, as nearly as possible, under the same
conditions and limitations as required by this chapter in the purchase of
personal property. The governing body or its authorized representative may
dispose of personal property of the local government by any manner, including,
without limitation, at public auction, if the governing body or its authorized
representative determines that the property is no longer required for public
use and deems such action desirable and in the best interests of the local
government.

2. The board of trustees of a school
district may donate surplus personal property of the school district to any
other school district in this State, to the Achievement School District or to a
charter school that is located within the school district without regard to:

(a) The provisions of this chapter; or

(b) Any statute, regulation, ordinance or
resolution that requires:

(1) The posting of notice or public
advertising.

(2) The inviting or receiving of
competitive bids.

(3) The selling or leasing of personal
property by contract or at a public auction.

3. The provisions of this chapter do not
apply to the purchase, sale, lease or transfer of real property by the governing
body.

NRS 332.195Joinder or mutual use of contracts by governmental entities.

1. Except as otherwise provided in this
section:

(a) A governing body or its authorized
representative and the State of Nevada may join or use the contracts of local
governments located within or outside this State with the authorization of the
contracting vendor. The originally contracting local government is not liable
for the obligations of the governmental entity which joins or uses the
contract.

(b) A governing body or its authorized
representative may join or use the contracts of the State of Nevada or another
state with the authorization of the contracting vendor. The State of Nevada or
other state is not liable for the obligations of the local government which
joins or uses the contract.

2. A governing body or its authorized
representative or the State of Nevada shall not join or use a contract pursuant
to this section if a contractor’s license issued pursuant to chapter 624 of NRS is required for any portion
of the work to be performed under the contract.

NRS 332.201Duty of governing body of certain counties to report to Office
of Economic Development concerning local emerging small businesses.

1. The governing body or its authorized
representative in a county whose population is 100,000 or more shall submit a
report every 6 months to the Office. The report must include, without
limitation, for the period since the last report:

(a) The number of local emerging small businesses
that the governing body or its authorized representative solicited to submit a
bid or proposal to the governing body or its authorized representative for a
local purchasing contract;

(b) The number of local emerging small businesses
that submitted a bid or proposal to the governing body or its authorized
representative for a local purchasing contract;

(c) The number of local purchasing contracts that
were awarded by the governing body or its authorized representative to local emerging
small businesses;

(d) The total number of dollars’ worth of local
purchasing contracts that were awarded by the governing body or its authorized
representative to local emerging small businesses; and

(e) Any other information deemed relevant by the
Office.

2. The report required pursuant to
subsection 1 must be submitted within 90 days after:

(a) The end of each fiscal year; and

(b) The end of each calendar year.

3. As used in this section:

(a) “Local emerging small business” has the
meaning ascribed to it in NRS 231.1402.

(b) “Local purchasing contract” means a contract
awarded pursuant to the provisions of this chapter for which the estimated cost
is $50,000 or less. The term does not include a contract for which a
procurement card is used.

(c) “Office” means the Office of Economic
Development.

(d) “Procurement card” means a charge card issued
to a governing body or its authorized representative for the purpose of purchasing
goods and services pursuant to the provisions of this chapter.

1. Each county of this state whose
population is 100,000 or more, must be a member of the Commission to Study
Governmental Purchasing which is composed of all purchasing agents of the local
governments within those counties. Each county whose population is less than
100,000 may participate as a voting member of the Commission. The members shall
select a Chair from among their number.

2. The Commission shall meet no less than
quarterly or at the call of the Chair to study practices in governmental
purchasing and laws relating thereto and shall make recommendations with
respect to those laws to the next regular session of the Legislature.

NRS 332.223Use of facilities of local government by nonprofit corporation
that provides ambulance services pursuant to franchise agreement.A nonprofit corporation that provides
ambulance services pursuant to a franchise agreement with a local government
may obtain supplies, materials and equipment on a voluntary basis through the
facilities of the local government.

NRS 332.225Requirements of chapter unaffected by approval by governing body
of application for federal grant.Approval
by a governing body of an application for a federal categorical grant does not
dispense with the requirements of this chapter for approval by the governing
body of the letting of any contract.

NRS 332.300Definitions.As
used in NRS 332.300 to 332.440,
inclusive, unless the context otherwise requires, the words and terms defined
in NRS 332.310 to 332.350,
inclusive, have the meanings ascribed to them in those sections.

NRS 332.310 “Building” defined.“Building”
means any existing structure, building or facility, including any equipment,
furnishings or appliances within the existing structure, building or facility,
that is owned or operated by a local government. The term includes, without
limitation, occupied and unoccupied existing structures, buildings and
facilities, and any other existing improvements owned or operated by a local
government that incur operating costs.

NRS 332.320 “Operating cost savings” defined.“Operating
cost savings” means any expenses that are eliminated or avoided on a long-term
basis as a result of the installation or modification of equipment, or services
performed by a qualified service company. The term does not include any savings
that are realized solely because of a shift in the cost of personnel or other
similar short-term cost savings.

1. Means any improvement, repair or
alteration to a building, or any equipment, fixture or furnishing to be added
or used in a building that is designed to reduce operating costs, including,
without limitation, those costs related to electrical energy and demand,
thermal energy, water consumption, waste disposal and contract-labor costs, and
increase the operating efficiency of the building for the appointed functions
that are cost-effective.

2. Includes, without limitation:

(a) Operational or maintenance labor savings
resulting from reduced costs for maintenance contracts as provided through
reduction of required maintenance or operating tasks, including, without
limitation, replacement of filters and lighting products, and equipment
failures.

(b) Investment in equipment, products and
materials, and strategies for building operation, or any combination thereof,
designed to reduce energy and other utility expenses, including, without
limitation:

(1) Costs for materials and labor required
to replace old equipment with new, more efficient equipment.

(2) Storm windows or doors, caulking or
weather stripping, multiglazed windows or doors, heat-absorbing or
heat-reflective glazed or coated windows or doors, reductions in glass area,
and other modifications to windows and doors that will reduce energy
consumption.

(13) Devices that reduce water consumption
in buildings, for lawns and for other irrigation applications.

(14) Any additional improvements to
building infrastructures that produce energy and operating cost savings,
significantly reduce energy consumption or increase the operating efficiency of
the buildings for their appointed functions, provided that such improvements comply
with applicable building codes.

(15) Trash compaction and waste
minimization.

(16) Ground source systems for heating and
cooling.

(c) Investment in educational programs relating
to the operation and maintenance of any equipment installed to reduce operating
costs.

3. Does not include the construction of a
new building or any addition to a building that increases the square footage of
the building.

NRS 332.340 “Performance contract” defined.“Performance
contract” means a written contract between a local government and a qualified
service company for the evaluation, recommendation and implementation of one or
more operating cost-savings measures.

NRS 332.351Qualification as qualified service company; investigation and
determination by local governments; confidentiality of certain information.

1. Except as otherwise provided in NRS 332.353, a person who wishes to qualify as a
qualified service company and submit a proposal for a performance contract with
a local government must file an application with the local government.

2. Upon receipt of an application pursuant
to subsection 1, the local government shall:

(a) Investigate the applicant to determine
whether the applicant is qualified to bid on a performance contract; and

(b) After conducting the investigation, determine
whether the applicant is qualified to bid on a performance contract.

3. The local government shall notify each
applicant in writing of its determination.

4. The local government may determine an
applicant is qualified to bid:

(a) On a specific project; or

(b) On more than one project over a period of
time to be determined by the local government.

5. Except as otherwise provided in NRS 332.353, the local government shall use only the
criteria described in NRS 332.352 in determining
whether to approve or deny an application.

6. Except as otherwise provided in NRS 239.0115, financial information and
other data pertaining to the net worth of an applicant which is gathered by or
provided to a local government to determine the financial ability of an
applicant to perform a contract is confidential and not open to public
inspection.

1. Except as otherwise provided in NRS 332.353, a local government shall use the
following criteria for determining whether a person satisfies the requirements
to be a qualified service company pursuant to NRS
332.360:

(a) The financial ability of the applicant to
perform the work required by the local government;

(b) Whether the applicant possesses a state
business registration issued pursuant to chapter
76 of NRS;

(c) Whether the applicant possesses a valid
contractor’s license issued pursuant to chapter
624 of NRS of a class corresponding to the work required by the local
government and, if engineering work is required, whether the applicant
possesses a valid license as a professional engineer issued pursuant to chapter 625 of NRS;

(d) Whether the applicant has the ability to
obtain the necessary bonding for the work required by the local government;

(e) Whether the applicant has successfully
completed an appropriate number of projects as determined by the local
government, but not to exceed five projects, during the 5 years immediately
preceding the date of application of similar size, scope or type as the work
required by the local government;

(f) Whether the principal personnel employed by
the applicant have the necessary professional qualifications and experience for
the work required by the local government;

(g) Whether the applicant has breached any
contracts with a public agency or person in this State or any other state
during the 5 years immediately preceding the date of application;

(h) Whether the applicant has been disqualified
from being awarded a contract by any governing body in the State of Nevada;

(i) Whether the applicant has been convicted of a
violation for discrimination in employment during the 2 years immediately
preceding the date of application;

(j) Whether the applicant has the ability to
obtain and maintain insurance coverage for public liability and property damage
within limits sufficient to protect the applicant and all the subcontractors of
the applicant from claims for personal injury, accidental death and damage to
property that may arise in connection with the work required by the local
government;

(k) Whether the applicant has established a
safety program that complies with the requirements of chapter 618 of NRS;

(l) Whether the applicant has been disciplined or
fined by the State Contractors’ Board or another state or federal agency for
conduct that relates to the ability of the applicant to perform the work
required by the local government;

(m) Whether, during the 5 years immediately
preceding the date of application, the applicant has filed as a debtor under
the provisions of the United States Bankruptcy Code;

(n) Whether the application is truthful and
complete; and

(o) Whether, during the 5 years immediately
preceding the date of the application, the applicant has, as a result of causes
within the control of the applicant or a subcontractor or supplier of the
applicant, failed to perform any contract:

(1) In the manner specified by the
contract and any change orders initiated or approved by the person or
governmental entity that awarded the contract or its authorized representative;

(2) Within the time specified by the
contract unless extended by the person or governmental entity that awarded the
contract or its authorized representative; or

(3) For the amount of money specified in
the contract or as modified by any change orders initiated or approved by the
person or governmental entity that awarded the contract or its authorized
representative.

Ê Evidence of
the failures described in this subsection may include, without limitation, the
assessment of liquidated damages against the applicant, the forfeiture of any
bonds posted by the applicant, an arbitration award granted against the
applicant or a decision by a court of law against the applicant.

2. Except as otherwise provided in NRS 332.353, in addition to the criteria described in
subsection 1, the local government may use any other relevant criteria that are
necessary to determine whether a person satisfies the requirements to be a
qualified service company pursuant to NRS 332.360.

NRS 332.353Additional circumstance in which person may be deemed qualified
service company.Notwithstanding
the provisions of NRS 332.352, a governing body may
deem a person a qualified service company if the person has been determined by:

1. The State Public Works Division of the
Department of Administration or a local government pursuant to NRS 338.1379 to be qualified to bid on a
public work; or

2. Another local government pursuant to NRS 332.351 to be qualified as a qualified service
company.

NRS 332.357Duty of Office of Energy to provide information and educational
resources; authority of Office of Energy to provide support to local
government; fees; administration of account for fees; application for and
receipt of other money for account; regulations.

(b) Include on the Internet website maintained by
the Office, if any, information and educational resources relating to operating
cost-savings measures and performance contracts.

2. The Office of Energy may, upon
receiving a request from a local government for support relating to operating
cost-savings measures:

(a) Provide to the local government support
relating to operating cost-savings measures; and

(b) Charge and collect a fee from the local
government for the provision of any support described in paragraph (a).

3. All fees charged and collected by the
Office of Energy pursuant to subsection 2 must be accounted for separately in
the State General Fund. The Director of the Office of Energy shall administer
the account. Money in the account must be used only to pay the costs incurred
by the Office of Energy to provide support to local governments pursuant to
subsection 2 and is hereby authorized for expenditure as a continuing
appropriation for this purpose.

4. The Director of the Office of Energy
may apply for and accept any gift, donation, bequest, grant or other source of
money for deposit in the account. The interest and income earned on money in
the account, after deducting any applicable charges, must be credited to the
account. Money that remains in the account at the end of the fiscal year does
not revert to the State General Fund, and the balance in the account must be
carried forward to the next fiscal year.

5. A local government may include in a
performance contract the amount of any fee charged by the Office of Energy
pursuant to subsection 2.

6. The Director of the Office of Energy
may adopt regulations to carry out the provisions of this section, including,
without limitation, regulations which establish the amount of the fees to be
charged and collected by the Office of Energy pursuant to subsection 2.

NRS 332.360Authority of local government to enter into performance
contract; purpose of performance contract; operational audits; third-party
consultants.

1. Notwithstanding any provision of this
chapter and chapter 338 of NRS to the
contrary, a local government may enter into a performance contract with a
qualified service company for the purchase and installation of an operating
cost-savings measure to reduce costs related to energy, water and the disposal
of waste, and related labor costs. Such a performance contract may be in the
form of an installment payment contract or a lease-purchase contract. Any operating
cost-savings measures put into place as a result of a performance contract must
comply with all applicable building codes.

2. If a local government is interested in
entering into a performance contract, the local government shall notify each
appropriate qualified service company and coordinate an opportunity for each
such qualified service company to:

(a) Perform a preliminary and comprehensive audit
and assessment of all potential operating cost-savings measures that might be
implemented within the buildings of the local government, including any
operating cost-savings measures specifically requested by the local government;
and

(b) Submit a proposal and make a related
presentation to the local government for all such operating cost-savings
measures that the qualified service company determines would be practicable to
implement.

3. The local government shall:

(a) Evaluate the proposals and presentations made
pursuant to subsection 2; and

4. The local government may enter into a
contract with the Office of Energy or retain the professional services of a
third-party consultant with the requisite technical expertise to assist the
local government in evaluating the proposals and presentations pursuant to
subsection 3. If the local government retains the professional services of a
third-party consultant, the third-party consultant must possess a state
business registration issued pursuant to chapter
76 of NRS and any other applicable licenses issued by a licensing board in
this State in the same discipline in which the consultant will be advising the
local government.

5. The qualified service company selected
by the local government pursuant to subsection 3 shall prepare a
financial-grade operational audit. Except as otherwise provided in this
subsection, the audit prepared by the qualified service company becomes, upon
acceptance, a part of the final performance contract and the costs incurred by
the qualified service company in preparing the audit shall be deemed to be part
of the performance contract. If, after the audit is prepared, the local
government decides not to execute the performance contract, the local
government shall pay the qualified service company that prepared the audit the
costs incurred by the qualified service company in preparing the audit if the
local government has specifically appropriated money for that purpose.

6. The local government shall enter into a
contract with the Office of Energy or retain the professional services of a third-party
consultant with the requisite technical expertise to assist the local
government in reviewing the operating cost-savings measures proposed by the
qualified service company and may procure sufficient funding from the qualified
service company, through negotiation, to pay for the costs incurred by the
Office of Energy or the third-party consultant. If the local government retains
the professional services of a third-party consultant, the third-party
consultant must be licensed pursuant to chapter
625 of NRS and certified by the Association of Energy Engineers as a
“Certified Energy Manager” or hold similar credentials from a comparable
nationally recognized organization. The Office of Energy or a third-party
consultant retained pursuant to this subsection shall work on behalf and for
the benefit of the local government in coordination with the qualified service
company.

NRS 332.362Duty of board of trustees of school district to adopt policy
concerning performance contracts; requirements for policy; annual report.

1. The board of trustees of a school
district shall adopt a policy setting forth the process for evaluating whether
work to be performed on a building will be performed pursuant to a performance
contract. The policy must include, without limitation:

(a) The criteria for determining the work which
will be evaluated pursuant to the policy;

(b) The requirement that the board of trustees or
its designee evaluate whether the work to be performed:

(1) Consists primarily of one or more
operating cost-savings measures;

(2) Qualifies to be performed pursuant to
a performance contract with a return on investment that the board of trustees
determines would make entering into a performance contract in the best interest
of the school district; and

(3) Would be more reasonably included
under an existing performance contract rather than a new performance contract;
and

(c) The requirement that the board of trustees or
its designee, if it determines not to enter into a performance contract,
document the reasons for that determination.

2. The board of trustees of a school
district shall cause to be prepared an annual report which sets forth the
operating cost-savings measures, if any, that:

(a) Were identified in a financial-grade operational
audit submitted to the board of trustees pursuant to subsection 5 of NRS 332.360 during the immediately preceding year; and

(b) Were not included in a performance contract
during the immediately preceding year.

3. As used in this section, “operating
cost-savings measure” means an investment in equipment, products and materials,
and strategies for building operation, or any combination thereof, designed to
reduce energy and other utility expenses, including, without limitation:

(a) Costs for materials and labor required to
replace old equipment with new, more efficient equipment.

(b) Storm windows or doors, caulking or weather
stripping, multiglazed windows or doors, heat-absorbing or heat-reflective
glazed or coated windows or doors, reductions in glass area, and other
modifications to windows and doors that will reduce energy consumption.

1. A performance contract may be financed
through a person other than the qualified service company.

2. A performance contract must be
structured to guarantee operating cost savings, which includes, without limitation,
the design and installation of equipment, the operation and maintenance, if
applicable, of any of the operating cost-savings measures and the guaranteed
annual savings which must meet or exceed the total annual contract payments to
be made by the local government, including any financing charges to be incurred
by the local government over the life of the performance contract. The local
government may require that these savings be verified annually or over a
sufficient period that demonstrates savings.

NRS 332.371Requirements for performance contract that guarantees operating
cost savings.A performance
contract that guarantees operating cost savings must identify the specific
dollar amount and units or percentages of consumption that the qualified
service company anticipates will be eliminated or avoided on a long-term basis
as a result of the operating cost-savings measures that the local government is
implementing.

1. A performance contract must provide
that all payments, other than any obligations that become due if the contract
is terminated before the contract expires, must be made over time.

2. Except as otherwise provided in this
subsection, a performance contract, and the payments provided thereunder, may
extend beyond the fiscal year in which the performance contract becomes
effective for costs incurred in future fiscal years. The performance contract
may extend for a term not to exceed 25 years. The length of a performance
contract may reflect the useful life of the operating cost-savings measure
being installed or purchased under the performance contract.

3. The period over which payments are made
on a performance contract must equal the period over which the operating cost
savings are amortized. Payments on a performance contract must not commence
until the operating cost-savings measures have been installed by the qualified
service company.

NRS 332.390Prevailing wage requirement; duty of qualified service company
to furnish bonds before entering into certain performance contracts.

1. If a performance contract entered into
pursuant to NRS 332.300 to 332.440,
inclusive, requires the employment of skilled mechanics, skilled workers,
semiskilled mechanics, semiskilled workers or unskilled labor to perform the
performance contract, the performance contract must include a provision
relating to the prevailing wage as required pursuant to NRS 338.020 to 338.090, inclusive.

2. Before a qualified service company
enters into a performance contract pursuant to NRS
332.300 to 332.440, inclusive, that exceeds
$100,000, the qualified service company must furnish to the contracting body
any bonds required pursuant to NRS 339.025.
The provisions of chapter 339 of NRS apply to
any performance contract described in this subsection.

NRS 332.400Rights of local government and qualified service company if
insufficient money appropriated by local government to make payments.Notwithstanding any provision of NRS 332.300 to 332.440,
inclusive, to the contrary, a performance contract entered into pursuant to NRS 332.300 to 332.440,
inclusive, must include a clause that sets out the rights of the local
government and the qualified service company if the local government does not
appropriate sufficient money for payments to be continued under the performance
contract.

NRS 332.410Reinvestment of savings realized under contract.A local government may reinvest any savings
realized under a performance contract whenever practical into other operating
cost-savings measures provided the local government:

1. Is satisfying all its other obligations
under the performance contract; and

2. Complies with the requirements of NRS 332.300 to 332.440,
inclusive, when reinvesting the savings into other operating cost-savings
measures.

1. During the term of a performance
contract, the qualified service company shall monitor the reductions in energy
or water consumption and other operating cost savings attributable to the
operating cost-savings measure purchased or installed under the performance
contract, and shall, at least once a year or at such other intervals specified
in the performance contract, prepare and provide a report to the local
government documenting the performance of the operating cost-savings measures.

2. A performance contract must identify
the methodology that the local government will use to validate the cost savings
identified by the qualified service company.

3. A qualified service company and the
local government may agree to make modifications in the calculation of savings
based on:

(a) Subsequent material changes to the baseline
consumption of energy or water identified at the beginning of the term of the
performance contract.

(b) A change in utility rates.

(c) A change in the number of days in the billing
cycle of a utility.

(d) A change in the total square footage of the
building.

(e) A change in the operational schedule, and any
corresponding change in the occupancy and indoor temperature, of the building.

(f) A material change in the weather.

(g) A material change in the amount of equipment
or lighting used at the building.

(h) Any other change which reasonably would be
expected to modify the use of energy or the cost of energy.

NRS 332.430Qualified service company to provide information concerning
performance contract to Office of Energy.A
qualified service company shall provide to the Office of Energy information
concerning each performance contract which the qualified service company enters
into pursuant to NRS 332.300 to 332.440, inclusive, including, without limitation, the
name of the project, the local government for which the project is being
carried out and the expected operating cost savings. The Office of Energy may
report any energy savings realized as a result of such performance contracts to
the United States Department of Energy pursuant to 42 U.S.C. § 13385.

1. Each local government that enters into
a performance contract pursuant to NRS 332.300 to 332.440, inclusive, shall, on or before February 1 of
each year, prepare and submit a report to the Director of the Legislative
Counsel Bureau for transmittal to the Legislature if the Legislature is in
session, or to the Interim Finance Committee if the Legislature is not in
session.

2. The report required pursuant to
subsection 1 must include, without limitation:

(a) The status of the construction and financing
of the operating cost-savings measures described in the performance contract.

(b) The cumulative amount of operating
cost-savings that have resulted from the operating cost-savings measures.

(c) The amount of operating cost-savings that are
projected for the future.

(d) Any other information required by the
Legislature or Interim Finance Committee.

NRS 332.440Financial mechanisms to guarantee operational cost savings are
realized.A performance contract
must include appropriate financial mechanisms determined to be necessary by the
city or county treasurer, as appropriate, to guarantee that operating cost
savings are realized by the local government if the actual cost savings do not
meet the predicted cost savings.

NRS 332.800Interest of member of governing body or evaluator in contract
prohibited; exception; penalty.

1. Except as otherwise provided in NRS 281.230 and 281A.430, a member of the governing body
may not be interested, directly or indirectly, in any contract entered into by
the governing body, but the governing body may purchase supplies, not to exceed
$1,500 in the aggregate in any 1 calendar month, from a member of such
governing body when not to do so would be of great inconvenience due to a lack
of any other local source.

2. An evaluator may not be interested,
directly or indirectly, in any contract awarded by such governing body or its
authorized representative.

3. A member of a governing body who
furnishes supplies in the manner permitted by subsection 1 may not vote on the
allowance of the claim for such supplies.

4. A person who violates this section is
guilty of a misdemeanor and, in the case of a member of a governing body, a
violation is cause for removal from office.

NRS 332.810Prohibited acts by bidders before award of contract; penalty.

1. Before a contract is awarded, a person
who has bid on the contract or an officer, employee, representative, agent or
consultant of such a person shall not:

(a) Make an offer or promise of future employment
or business opportunity to, or engage in a discussion of future employment or
business opportunity with, an evaluator or member of the governing body
offering the contract;

(b) Offer, give or promise to offer or give
money, a gratuity or any other thing of value to an evaluator or member of the
governing body offering the contract; or

(c) Solicit or obtain from an officer, employee
or member of the governing body offering the contract:

(1) Any proprietary information regarding
the contract; or

(2) Any information regarding a bid on the
contract submitted by another person, unless such information is available to
the general public.

2. A person who violates any of the
provisions of subsection 1 is guilty of a gross misdemeanor and shall be
punished by imprisonment in the county jail for not more than 364 days, or by a
fine of not less than $2,000 nor more than $50,000, or by both fine and
imprisonment.

1. Any agreement or collusion among
bidders or prospective bidders in restraint of freedom of competition by
agreement to bid a fixed price, or otherwise, shall render the bids of such
bidders void.

2. Advance disclosures of proprietary
information or any other information to any particular bidder which would give
that particular bidder any advantage over any other interested bidder in
advance of the opening of bids, whether in response to advertising or an
informal request for bids, made or permitted by a member of the governing body
or an employee or representative thereof, shall operate to void all bids
received in response to that particular request for bids.

NRS 332.830Purchase of information system or system of communication for
use by response agency.

1. On and after October 1, 2005, a
governing body or its authorized representative shall not purchase an
information system or system of communication for use by a response agency
unless the system complies with the plan established pursuant to subsection 6
of NRS 239C.160.

2. On and after October 1, 2005, any grant
or other money received by a local government from the Federal Government for
the purchase of an information system or system of communication for use by a
response agency must not be used to purchase such a system unless the system
complies with the plan established pursuant to subsection 6 of NRS 239C.160.

3. As used in this section:

(a) “Information system” has the meaning ascribed
to it in NRS 239C.060.